Arthur Hayes predicts a potential 20-30% decline in the price of Bitcoin in March 2024, following its previous peak. The reason behind this, according to Hayes, lies in the US monetary policy. However, he believes that Bitcoin will bounce back and resume its growth immediately after March 20. This date marks the day when the US Federal Reserve System (FRS) will release its forecast for changes in the key rate, which is currently being prepared by the Open Market Committee.
“Bitcoin will experience a sharp decline initially, but will rebound before the Fed meeting. This is because Bitcoin is the only globally traded neutral reserve currency. Bitcoin knows that the Fed always responds by injecting liquidity when things go wrong,” writes Hayes.
Consequently, Hayes states that he will refrain from purchasing Bitcoin until March arrives.
Hayes additionally speculates that the approval of the Bitcoin ETF by the US Securities and Exchange Commission (SEC) will inject several hundred billion dollars into the crypto market, ultimately driving the price of Bitcoin to $70,000.
Recently, it was reported that SEC lawyers from the Division of Trading and Markets held meetings with representatives of prominent exchanges, such as the New York Stock Exchange (NYSE), Nasdaq, and the Chicago Board Options Exchange (CBOE), who have all expressed their readiness to trade Bitcoin ETF shares. During these meetings, the US regulatory agency discusses the documents submitted by exchanges on behalf of issuers awaiting SEC approval.
In a separate development, the founder of MicroStrategy plans to sell $216 million worth of shares in the American software development company. The CEO intends to utilize the proceeds to purchase bitcoins.